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<br /> $ORROWER COVENANTS tfiat Borrowcr is lawfull�'seized of the estate hereby conveyed and has the right to grant
<br /> and convey the Property and that the Property is unencumbaod,ex¢ept for encumbrances of mord. Botrowa wacrx��ts and �
<br /> will defend generaily the tide to the Property against all claims and detnands,subject ta any encumbrances of nrnrd. �
<br /> UNIFORM COVENANTS. - ' i
<br /> 1. Payment oi Prindpai,Inter�st and Late Charge. Borrower shall pa}f when dne the principal of.and intcrest on.
<br /> the debt evidenced by the Note and l�te charges due under the Nou. , ..
<br /> 2. Monthly Payment of Tates,Iasnrance,and Other C6arges. Borrower shall incinde in eaL'h monthly payment, ..
<br /> , together with the principal and interest as set forth in the Note and any late charges, a sum for (a) tazes and spxial ::
<br /> assessments levied or to be levied against the Ptnperty, (b) leasehold paymrnts or ground rents on the Property� and
<br /> (c) premiums for insurance rcquired under Paragraph 4. In any year in which the Lenda must pay a mortgage insurance ,,
<br /> premium to the Sxretary of Housing and Urban Development("Secr�ry").or in any year in which such prert►ium would
<br /> have been rcquircd if Ler:�ler stiU held the Security Instrument,r�ch monthly payment shall also include eithv:(i)a sur.►for' . ,,
<br /> the annual mortgage insw�nce premium to be paid by[.ender to the Saretary,or(ri)a mondily charge instead of a mortgage
<br /> insvrance peemium if this Savnty Instrument is hetd by the Secretary, in a reaconabk a�namt m be detamined by the ,,
<br /> Se�c�etary. Except for.the monthly eharge by the Sa�retary.d�ese items are called"Escrow Items"aad the svmc paid to Lender ' ,,
<br /> are called"Escrow Funds."
<br /> Lender may,at any time,collect and hold arnounts for Esccow Items in an aggregate amount not to ezceed the m�imum ::
<br /> amount that may be required for Borrower's escroK�acrount under tt►e Real Estaoe Settlem�nt Procedures Act of 1974, 12 ,,
<br /> U.S.C.§ 2601 et s�. and implementing regulatioo� !4 CFR Part 3500, as they cnay be amendal from time to tiir.e � .:
<br /> ("RESPA"),except that the cushion or rcserve permitted by RFSPA for uaanticipaud disbursenxnts or disbuisemenu before .:
<br /> tho Borrower's payments arr available in the account may not be based on amounts dn-:or the mortgage insvrance prcmium. :,
<br /> If the amounts hdd by Lender for Escrow Items exaed the amounts permitted to be held by RESPA.Ltnder shall deal
<br /> with the ezcess funds as required by RFSPA. If the amounts of funds held by Lender at any time ate not snfficient to pay the
<br /> Escrow Items when due, Lender may notify the Bomowa and roquire Borrowa to make up the shortage or deficiency as
<br /> permiited by KESPfi. ,
<br /> The Escrow Funds are pledged as additional security for all sum5 securrd by this Securiry Instrument, If Borrower ::
<br /> tenders to Lender the full payment of all such sums,Borrower s account shall be crcdited with the balance rcmaining for all ,,
<br /> installment items(a),(b),and(c)and any mortgage insurasa p►�m.ium instaliment thnt I,endtr has not become obligated to
<br /> pay to the Secretary,and Lender shall pmmptly refund any exoess funds to Borrowa. Immodi�tely prior to a foreclos��re sale
<br /> of the Property er its acquisition by Lender, Borrower's account shall be creditai with any balance remaining for all �
<br /> instaliments for items(a),(b),and(c).
<br /> 3. Application of Payments. A�payments under Paragraphs i and 2 shall be applied by Lenda as fQliows: ,,
<br /> FIRST,to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by
<br /> the Secretary instead of!he monthly mortgagc insurancx premium;
<br /> SECOND, to any tazes, special assessments, leasehold paymenu or ground rents, and fire, flood and otha ,:
<br /> hazard insurance premiums,as required;
<br /> TIiIRD,to interest due under the Note; ..
<br /> FOIIRTH,to annortization of the principal of the Note; ,_
<br /> FlFI'H,to late charges due under the Not�. ,,
<br /> 4. FirY,Flood and Other Hazard I�uurance. Borro�ver shall insure all improvert�ents on the Property,whcther now ::
<br /> in existence or subsequendy erected, against any hazards, r.bsualties, and rnntingoncies, including fire, for whicfi Lxnder
<br /> requires insuranre. This insurance shali be r�aintained in the amounes and for the periods that Lender ra�uines. Borrower :,
<br /> shall also insure ail improvements on the Property,whether now in ezistence oe subsequendy erected,against loss by floods ,_
<br /> to the extent require,d by the Secretary. All irtsurance shall be carried with companies appraved by Lender. The insurance ,,
<br /> policies and any renewals shall be held by I.ender and shalt include loss payable clauses in favor of.arii in a form acceptabk .:
<br /> to,L.ender.
<br /> In the event of loss,Borrower shall give I.ender immediate no6ce by mail. Lender may make proof of loss if not made ,,
<br /> prompdy by Borrower. Each insurance company concerned is hereby authorizod and direct2d to make payment for sucn los.e ,,
<br /> direcdy to Lender,instead of to Borrvwer and to T..ender joindy. Ail or any part af the i��surance proceals may be applied by
<br /> Lender,at its option,eith�er(a)to the reduction of the indebiedness under the Not�and this Security I±sstrument,first to any :,
<br /> delinquent amounts applied in the arder in Paragraph 3,and then to pmpaymenr of principal,or(b)to the restoration or repair ::
<br /> of th�e damaged property. Any applicauen of the procads to the principa!shall not extend or postpone the dua date of the
<br /> monthiy payments which are referred ro in Paragraph 2, or change the smount of such payments. Any ezcess �nsurance
<br /> proceects over an amount required to pay all outstanding indebGxt�css under the Note and this Security Instrvment shall be
<br /> paid to thc es�tity legally entitted thereta
<br /> In tsie event of foceclosure of this Security Instrurr+�nt or other transfer of`lide to the Property that extinguishes the ,,
<br /> indebtr,�iness,all right,tide and interest of Bomower in and to insurance po6cies in force shall pass to the piu�cha�er. ,,
<br /> S. Omipancy, Preservation„ Maintenar.�e and Protection of the Propert�; Borrower's Loan-'Applk��tlon;
<br /> I,easrholds. Borrower shall occupy;establish,and use the Property as Borrower's pnnc�pal residence within sizry days after
<br /> the execution of this Security Inswrr�nt and shall continue to occupy the Pro�eerty as Borrower s principal residence for at
<br /> least one year after the ciate of occupancy, uniess the Secretary determines this requuement will cause undue hardship for
<br /> Borrower,or unless extenuating circumstances exist which az�e beyond Borrowd s rnntr�l. Barower shal!notify Lenders of
<br /> any eatenuating circumstances. Borrower shali not commit waste or destroy,damage or sutrstantislly change the Property or
<br /> allow the Property to deteriorate, r�s�zai�ie wear and tear ezceptcd: Lender may inspect the Property if the Property is
<br /> vacant or abandoned or the loan is ie� ietault Lender may take reasonable action to protect and preserve such vacant or
<br /> absndoned Property. Borrower shall also be in de:aolt if Borrower,during the loan application process,gave materi�lly false
<br /> • or inaccurate information or statements to Lender(or failed to provide Lender with any material information)in connection
<br /> with the loan evidenced by the Note.i�cluding,but not limite�to,representa6ons conceming Borrower's occupanty of the
<br /> Propeety as a principai residence. If this Savrity Instrument is on a leasehold,Borrower shall comply with the provisions of
<br /> the lease. If Borrower acquires fee tide to the Property,the leasehold and fee dde shall not be merged unless L.ender agrees to
<br /> the merger in writing.
<br /> 6. Charges to Borrower and Protection of Lender's Wghts in the Property. Borrower shall pay all governmental
<br /> or municiQal charges, fines and imposidons that are not included in Paragraph 2. Borrower shall pay these obligations on
<br /> time directly to the entity which is owed the paymenG If failnre to pay would adversGly affect Lender's interest in the
<br /> Property,upo�i[.ende►'s request Borrower shall promptty fvrnish to Lxnder raceipts evidencing these payments.
<br /> If Borrower fails to make these payments or the payments required by raragraph 2, or fails to perform any other
<br /> covenants and agreements contained in this Security Instrument,or there is a legal proceeding that may significantly affect
<br /> Lender s rights in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or rcgulations).
<br /> then Lender may du and tray whatever is naxssary to protect the value of the Property and Lender's rights in the Property, .:
<br /> includinp,payment of taxes,hazard insurance and other items men6oned in Paragraph 2. :,
<br /> Any amounts disbursed by L.ender under this Paragraph shall become an additional debt of Borrower and be securcd by ,,
<br />' this Security IncwmenG Thest amountc shall bear interest from the date of disbur.�emen�at the Note rute,and at the option
<br /> of Lender,shall be immediately due and payabk.
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